Wall Street Bets: Gambling Sector Sees Varied Investor Focus

Analysts assess prospects for Inspired Entertainment, gaming sector investor interests, Mohegan Tribal Gaming, and VICI Properties' deal with Pure Casino Entertainment.

Apr. 6, 2026 at 2:06pm

Got story updates? Submit your updates here. ›

This edition of Wall Street Bets covers recent analyst notes on the gambling industry. B. Riley Securities sees favorable business momentum for Inspired Entertainment that is not reflected in its current stock price. Jefferies' David Katz looks at what is piquing investors' interest in the gaming sector, including online sports betting and digital names. Fitch Ratings placed Mohegan Tribal Gaming Authority's ratings on Watch Positive due to an expected reduction in leverage from the sale of the Connecticut Sun WNBA franchise. Truist Securities' Barry Jonas examined VICI Properties' acquisition of two gaming assets in Alberta from Pure Casino Entertainment.

Why it matters

These analyst insights provide a window into the current dynamics and investor focus areas within the broader gambling industry, including the performance and prospects of specific companies, the appeal of online sports betting and digital gaming, the impact of asset sales and acquisitions, and the evolving landscape of the sector.

The details

B. Riley Securities' Josh Nichols believes Inspired Entertainment's current share price of around $7 does not reflect the company's favorable business momentum, guiding for at least 20% year-over-year growth in Q1 EBITDA. Jefferies' David Katz notes investor focus on online sports betting, digital gaming names, and the 'prove-it mode' of companies like DraftKings and Sportradar, while seeing potential upside for Rush Street. Fitch Ratings placed Mohegan Tribal Gaming Authority's ratings on Watch Positive due to an expected reduction in leverage from the sale of the Connecticut Sun WNBA franchise, which the tribe plans to use to pay down debt. Truist Securities' Barry Jonas examined VICI Properties' acquisition of two gaming assets in Alberta from Pure Casino Entertainment at an 8.0% cap rate, which he sees as modestly accretive to VICI's adjusted funds from operations.

  • On April 6, B. Riley Securities' Josh Nichols looked at prospects for Inspired Entertainment.
  • On April 5, Jefferies' David Katz examined what is piquing the interest of gaming sector investors.
  • On April 2, Fitch Ratings announced it placed Mohegan Tribal Gaming Authority's ratings on Watch Positive.
  • On March 30, Truist Securities' Barry Jonas looked at VICI Properties' deal with Pure Casino Entertainment.

The players

Josh Nichols

An analyst at B. Riley Securities.

David Katz

An analyst at Jefferies.

Mohegan Tribal Gaming Authority

The gaming authority for the Mohegan Tribe, which owns and operates the Mohegan Sun casino.

VICI Properties

A real estate investment trust that owns gaming properties and leases them to gaming operators.

Pure Casino Entertainment

A casino operator that recently completed a take-private deal, in connection with which VICI acquired two gaming assets in Alberta.

Got photos? Submit your photos here. ›

What they’re saying

“We believe buy-rated Inspired Entertainment ($13 price target) ended 1Q with favorable business momentum that is not reflected in the ~$7 share price (4.3x 2026E EV/EBITDA).”

— Josh Nichols, Analyst

“Investors have been notably focused on online sports betting and digital names in general for several reasons. The ongoing noisy narratives of Kalshi, the process of legalization of both OSB and igaming in various states and the recent positive data points on OSB.”

— David Katz, Analyst

The takeaway

The varied analyst perspectives highlight the complex and evolving nature of the gambling industry, with investors focused on a range of factors including company-specific performance, the growth of online sports betting and digital gaming, and the impact of mergers, acquisitions, and asset sales. These insights provide a nuanced view of the current state and future prospects of the sector.